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5) The recent  report by the National Bank for Agriculture and Rural Development (NABARD), reiterate the vulnerability of Indian agriculture households. Discuss.(250 words)

Topic – Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

5) The recent  report by the National Bank for Agriculture and Rural Development (NABARD), reiterate the vulnerability of Indian agriculture households. Discuss.(250 words)

Reference

Reference

Why this question

Agriculture is the livelihood of around 48% of Indian population. It is extremely essential to discuss about the vulnerabilities of Indian agriculture households and how they have progressed with time. Besides, launched in 2016-17, NAFIS is a national level survey that offers a comprehensive overview of the rural population in terms of their status of livelihoods and level of financial inclusion. It was conducted in more than 40,000 households from 245 districts in 29 states. Its findings are important.

Directive word

Discuss- This is an all-encompassing directive which mandates us to write in detail about the key demand of the question. We also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.

Key demand of the question.

The question wants us to write in detail about the findings of the recent report by NABARD which highlights the vulnerabilities of Indian agriculture households. We also have to discuss the findings of some other report which reiterates such findings.

Structure of the answer

Introduction– write a few lines about the importance of agriculture for the vast majority of Indian farming households, as a source of subsistence and livelihood. Mention agriculture’s contribution to national GDP.

Body

  • Discuss the findings of the report of the National Sample Survey Office (NSSO), released in 2014, which gives a detailed picture of the vulnerability of Indian agricultural households. E.g 52 per cent of the total agricultural households in the country are in debt; If you adjust for inflation, farmers’ incomes have remained frozen in the past 10 years; the debt is being incurred by the the richer, more prosperous farmers etc.
  • Discuss the findings of the recent NABARD All India Rural Financial Inclusion Survey (NAFIS) report. E.g Apart from a paltry income, farmers are facing rising indebtedness, lesser financial inclusion, and absence of insurance facility, in the past four years, the income of a farm household has increased by just Rs 2,505/month; 41 per cent of rural households are indebted, of which majority (43 per cent) are agriculture households; Around one-third of total households take loan from money lenders and other non-financial institutions.  Although around 60 per cent of households take loans from financial institutions, the average amount of loan from non-institution is more than double than any financial institution etc.

Conclusion sum up your discussion in a few lines and form a fair and a balanced conclusion on the above issue.